Waqa Ltd have set a 5-year life for the proposed nailfile project. Waqa's management have given you the following forecasts of operating cash flows: 

• Sales of nailfiles for the first year are $120 000. The estimated growth rate for sales is 2% p.a. for the second and subsequent years of the project. 

• Raw materials are estimated at 15% of sales. 

• Labour costs for the project will be $30 000 per annum. 

• Waqa's annual electricity bill is $50 000. The electricity cost for the nailfile project is expected to be 12% of sales. 

• Determine the annual net operating cash flow for the nailfile project.